The IRS will Give More Penalties to Taxpayers in 2022

This year, 2022, is the year that the IRS might actually start to step up its collection efforts. It’s true that the IRS fell way behind in its collection efforts — as well as in processing tax returns — because of the Covid shutdowns. But America and the IRS are recovering. Now, the IRS is catching up on processing tax returns (some taxpayers have waited more than a year for their refunds) and the IRS is catching up on its collection efforts.

On June 21st the IRS reported that “more than twice as many returns await processing compared to a typical year at this point in the calendar year,” but the IRS at the same time said that the backlog of personal returns received in 2021 and soon the backlog in business returns received in 2021 will soon be cleared up. And that means more resources will be available for collections.

Who Will Be Targeted For IRS Collections? 

Clearly, anyone with an already outstanding tax bill will be targeted for renewed collection efforts. Also, taxpayers who didn’t file tax returns will be targeted. Remember, you can’t cover up W2s or 1099s because copies are always sent to the IRS. Even if you haven’t received a letter or notice yet from the IRS it could be coming soon. 

And, as a matter of fact, in early 2022 the IRS announced it was not sending out these notification letters because it wanted to concentrate on other priorities. That doesn’t mean the IRS was dismissing money that was owed because the IRS also warned that interest and penalties would continue to add up even if taxpayers were not being notified about their debts. 

So What Should You Do? 

Clearly, you should be taking steps before the IRS does. If you can pay your tax bill. If you can’t talk to a tax professional now about seeking relief whether it’s a payment plan or an Offer In Compromise or using other Fresh Start Programs. The faster you act, the more in control you will be and perhaps the more money and aggravation you will save. 

In fact, the IRS is also reminding the millions of taxpayers who filed extensions on their 2021 tax returns that the October 17th deadline on extensions is getting close. That’s a deadline you don’t want to miss especially if you want to file for one of the Fresh Start programs as being current with your tax returns is a requirement. 

See if you qualify for the Fresh Start Program today!

We provide our tax relief survey as a FREE resource – see if you qualify today!

  1. Answer a few questions about your finances
  2. Qualify and be presented with a resolution
  3. Enroll in Fresh Start

You can click here to be connected with a verified partner of